Salary & Payroll Information — Your 2026/27 Guide
The new tax year begins on 6 April 2026. This is your guide to taking a salary through your company — the most tax-efficient options, the payroll timeline, and what we need from you to get started.
With Clever Accounts, your dedicated accountant runs your payroll, files RTI with HMRC and keeps you compliant every month. We just need you to confirm the salary you'd like to take.
Action required — confirm your salary
HMRC's Real Time Information (RTI) rules require us to report each salary to HMRC on or before the day it's paid. If we do not receive confirmation from you, no salary will be processed — so please reply with your chosen salary by 15 April 2026.
Salary Options
Common salary options for 2026/27
These are the salary levels most directors consider. The personal allowance for 2026/27 is £12,570, so a salary up to this level is generally free of income tax. All figures are monthly unless stated and are illustrative — your accountant will recommend the best option for your circumstances.
| Annual salary | Gross / mo | Income tax | Employee NI | Net pay / mo | Employer NI | Employer NI with EA / staff | CT saving / yr no EA | CT saving / yr with EA |
|---|---|---|---|---|---|---|---|---|
£6,708 State Pension qualifying year | £559.00 | £0.00 | £0.00 | £559.00 | £21.35 | £0.00 | £1,067 | £1,275 |
£9,096 Secondary (employer) NI threshold | £758.00 | £0.00 | £0.00 | £758.00 | £51.20 | £0.00 | £1,231 | £1,728 |
£12,570 Full personal allowance | £1,047.50 | £0.00 | £0.00 | £1,047.50 | £94.63 | £0.00 | £1,469 | £2,388 |
£15,000 Above personal allowance | £1,250.00 | £40.50 | £16.20 | £1,193.30 | £125.00 | £0.00 | £955 | £2,170 |
EA = Employment Allowance.The Corporation Tax saving reflects the relief on the salary and employer's NI as deductible business costs. Figures are illustrative for 2026/27 and assume the director has no other earnings. We'll confirm the exact numbers for your situation.
What Happens When
Your payroll timeline
Here's how the first pay run of the new tax year works once you've confirmed your salary.
Confirm your salary instructions
Reply to confirm the salary you'd like to take for 2026/27. Under HMRC's Real Time Information rules, no salary can be processed until we hear from you.
First payroll processed
Once confirmed, we run your first pay period of the new tax year and produce your payslip.
First RTI submission to HMRC
We send your Full Payment Submission (FPS) to HMRC on or before payday, keeping your PAYE scheme fully compliant.
Monthly processing thereafter
We process payroll and file RTI every month for the rest of the tax year — no further action needed unless your salary changes.
The Detail
What you need to know
The rules behind running a compliant payroll — all handled for you as part of your service.
Real Time Information (RTI)
Every UK employer must report payroll to HMRC in real time — on or before each payday — using a Full Payment Submission. We handle this for you every month. Late or missed submissions can attract penalties of up to £100 per month, so it's important your salary is confirmed in good time.
Pension auto-enrolment
Employees earning more than £833 per month, aged between 22 and State Pension age, must be assessed and enrolled into a workplace pension each pay period. Sole directors with no other staff are usually exempt. We assess eligibility, handle enrolment, contributions and your declaration of compliance.
Employment Allowance
Eligible businesses can reduce their employer's National Insurance bill by up to £10,500 a year through Employment Allowance. It isn't available to single-director companies with no other employees, but it's valuable once you take on staff — and we'll claim it for you where you qualify.
Choosing the right salary
The optimal salary depends on your wider income, state-benefit entitlement, IR35 status and whether the role is genuinely appropriate to the work performed. We review your specific circumstances each tax year and recommend the most tax-efficient figure — you don't need to work it out yourself.
Ready to confirm your salary?
Reply to your accountant or get in touch and we'll set up your 2026/27 payroll, file RTI with HMRC and keep you compliant every month.